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NSM has highlighted three U.K. trade barriers of concern put in place against U.S. soybeans

June 9, 2020

3 Min Read
soybean field with farm in background
LEVEL FIELD: Upper Midwest soybean growers want a level export market playing field with the U.K. that is science-based, according to Northern Soy Marketing. NSM represents soybean farmers from Minnesota, North Dakota and South Dakota.Paula Mohr

Negotiations between U.S. and U.K. trade officials have begun in the wake of the U.K. formally exiting the European Union on Jan. 31, with food and agriculture being the primary focus for new trade deals.

Northern Soy Marketing (NSM), which represents soybean farmers from Minnesota, North Dakota and South Dakota, is taking proactive measures to ensure their voices are heard regarding barriers to soybean exports.

Farmers in these northern states produced nearly one billion bushels of soybeans in 2018, according to Tom Slunecka, NSM CEO, noting that the U.K. market could become a large market for its growers if non-tariff trade barriers would be worked out.

In May, NSM sent a letter the Greg Dowd, chief agriculture negotiator at the Office of the U.S. Trade Representative, about the restrictions of concern.

“Being part of the World Trade Organization, all barriers need to be science-based, and three of those barriers in the U.K. simply are not,” says Patrick O’Leary, NSM board member and Minnesota soybean farmer. “This is an unprecedented time when we can try to increase our soybean market for genetically-modified, organic and identity-preserved soybeans. These negotiations are critical for farmers across the tri-states and a way to add value to our already high-quality soybeans.”

Three non-tariff trade barriers were put into place against U.S. soybeans, dating back to 1996, including:

  • A zero threshold for biotechnology-derived soybean genetic events that have received approval for planting in the U.S. in 1996, but have not received import approval in the E.U., which the U.K. was then a member of.

  • Mandatory “GMO labeling” of food ingredients (e.g., soy flour) containing more than 0.9 percent content of mix-in, biotechnology-derived soybean genetic events that have received import approval in the U.K. and E.U.

  • A zero threshold in organic feed ingredients (e.g., soybean meal), implemented in 2019, for mixed-in biotechnology derived soybean genetic events that have received import approval in the U.K. and E.U.

“All of these non-tariff trade barriers are WTO-contravening because science has shown that naturally occurring bacteria in the soil can cause false-positives for GMO mix-in of up to 2%, which is above all of their allowed mix-in requirements,” says Matt Bainbridge, vice chairman of NSM and South Dakota soybean farmer. “Simply following science and increasing their mix-in tolerance to 5% would still ensure a safe, quality supply to the U.K. while still following WTO regulations.”

In addition to the WTO-contravening trade barriers, the U.K. also forces poultry feed manufacturers to produce 100% organic diets or decline to manufacture organic feed, ultimately excluding U.S. organic soybeans from the U.K.

“Our farmers take pride in producing a high-quality, reliable product to meet our customer’s demands,” says Mike Langseth, NSM chair and North Dakota soybean farmer. “We strongly encourage the USTR to push for the relaxation of these non-tariff barriers — especially the new 0% import tolerance on organic beans.

“A 0% tolerance is a de facto ban when you take into account the potential for false positives. Coming to an agreement on these issues starts the sole relationship between the U.S. and the U.K. off on a positive note.”

NSM is a new grower leader board formed by Minnesota, North Dakota and South Dakota. The board invests grower checkoff funds in research on soybean quality and amino acids in northern-grown soybeans and it funds outreach to global soybean buyers.

Source: Northern Soy Marketing, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all of its subsidiaries are not responsible for any of the content contained in this information asset.

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